A sum
was lent to x for three years.
by an organization who Fixed a yearly rate of 10% compound interest for repayment along with the condition of recovery in equal anuual installments of rs 31944 .what percentage ( correct to two decimal place) above the borrowed amount had x & y to pay to the organization?
Answers
Answer:I = P0r
A = P0 + I = P0 + P0r = P0(1 + r)
I is the interest
A is the end amount: principal plus interest
P0 is the principal (starting amount)
r is the interest rate (in decimal form. Example: 5% = 0.05)
Example 1
A friend asks to borrow $300 and agrees to repay it in 30 days with 3% interest. How much interest will you earn?
The principal
P
0
=
$
300
3% rate
r
=
0.03
You will earn $9 interest
I
=
$
300
(
0.03
)
=
$
9
One-time simple interest is only common for extremely short-term loans. For longer term loans, it is common for interest to be paid on a daily, monthly, quarterly, or annual basis. In that case, interest would be earned regularly. For example, bonds are essentially a loan made to the bond issuer (a company or government) by you, the bond holder. In return for the loan, the issuer agrees to pay interest, often annually. Bonds have a maturity date, at which time the issuer pays back the original bond value.
Example 2
Suppose your city is building a new park, and issues bonds to raise the money to build it. You obtain a $1,000 bond that pays 5% interest annually that matures in 5 years. How much interest will you earn?
Each year, you would earn 5% interest: $1000(0.05) = $50 in interest. So over the course of five years, you would earn a total of $250 in interest. When the bond matures, you would receive back the $1,000 you originally paid, leaving you with a total of $1,250.
We can generalize this idea of simple interest over time.
Simple Interest over Time
I = P0rt a
A = P0 + I = P0 + P0rt = P0(1 + rt)
I is the interest
A is the end amount: principal plus interest
P0 is the principal (starting amount)
r is the interest rate in decimal form
t is time
The units of measurement (years, months, etc.) for the time should match the time period for the interest rate.
Step-by-step explanation:
Answer:
for x ans = 20.63
for y i don't know there is no sense in y